Zoomcar Hits 15000 Monthly Car Subscription Run-Rate
Zoomcar hits a 15000 car subscription run-rate through its shared mobility platform in Aug 2019 alone. This feat makes it the third largest automobile player in India in terms of volume moved, just next to Maruti Suzuki and Hyundai Motor India by taking the August 2019 sale numbers. The platform has recently tied up with multiple automobile players including Nissan, Toyota, Volkswagen, and Renault and introduced their fleet/models onboard.
The platform is aiming to reverse the industry slowdown by integrating automakers with the ripe digital market of India and converting the non-intenders through a tech revolution. With India’s ongoing digital drive, internet base in India has already crossed the 500-million mark and is likely to reach 650 million by the end of this year. This presents a ripe digital market of ever-connected consumers.
Traditionally all OEMs target the top 10 percentile or the more affluent class (SEC A) of the population in terms of income when it comes to car ownership. However, Zoomcar through its shared subscription platform successfully breaks down the entry barriers to car ownership like hefty down payment, car loan, cost of ownership etc. Interestingly, 90% of the subscribers of Zoomcar are non-intenders. They never thought of owning a car. But due to compelling features of the Zoomcar subscription platform like zero down payment, no car loan, no maintenance cost and no insurance cost, suddenly having a car is no more a gruesome and financially crumbling option/choice. Also due to Zoomcar’s tech ability and an all connected app ecosystem, when you are not using your subscribed car, you can list it back on Zoomcar through a few taps on its subscriber’s app to share the car with its short term renters and offset the subscription cost by up to 70% which makes the subscription cost drastically lesser than the monthly EMI of the same model. This suddenly makes a car more accessible and affordable than before and now the mass middle class (SEC A + SEC B) whose majority population were non intenders can suddenly afford a car. This is a classic example of democratising a product using technology.
Greg Moran, Co-Founder and CEO, Zoomcar said, “Our vision is to acquaint new-age customers with hassle-free car ownership. At Zoomcar, we have always empowered our customers with better mobility alternatives and will continue doing so at scale. This also positively affects the automobile industry as it eliminates the economic barrier to entry of various socioeconomic groups. It, simultaneously, drives digital technology towards the sector, which has missed the digital influx to a great extent till now.
